Long term lease and rental increase

Hi,

I have two questions:

1) Is it possible to do a 3 year residential lease in NSW or is 12 months the maximum?

2) If I do 3 years lease does that mean I can’t increase the rent till the lease is finished or can I give some notice that I will be increasing the rent during the 3 year lease?

 

You can do the term which suits - iirc leases over 3 years can have a wider range of terms and so not need to comply with the residential tenancies act.

If you have a 3 year lease (or any lease) it must stipulate any rent reviews within the lease term however you are still required to give the 2 month written notice of the increase.

 

What are the wider range of terms?

Also where in the lease do I stipulate the rent reviews?

 

Wider terms can reflect a commercial lease El water services (ie water & sewer), rates, insurance etc.

Special conditions.

 

Property managers are worth every cent!.. Find the best one in the area and they can prepare lease documents for you with all the conditions ...

Generic advise - If property is in the right area, why bother signing 3 years lease (check vacancy rates in the area)? Bad tenants can be super painful..

Find the right property managers/agency and let them guide you ...

Cheers,

 

Sorry but I've never seen a PM draft effective clauses in a residential lease. Its not something I'd recommend getting your PM to do.

 

Contract is legal binding that holds managing agency/landlord and tenants liable..

Good agencies always know what to do in my opinion..

Key here is finding them and doing all the due diligence!.

 

I'm fairly familiar with how contracts work. Good agencies are good at managing properties I imagine - but not necessarily good for your legal drafting requirements. Trust me on that one. I used to see all kinds of rubbish "special conditions" on the residential leases that came across my desk.

Pretty much all were redundant or void for attempting to contract out.

Are you sure about this? I thought it was 20+ year leases that were open slather.

I didn't think there was anything magical about 3 year leases in NSW apart from break lease fee stuff.

So the usual rules apply (pretty much the standard terms only).

 

According to this link, residential tenancy agreements in NSW can go up to 98 years; the standard terms can be varied for terms over 20 years.

See figure 1 for details in each state:
Do long-term residential leases result in long-term tenancies?

 

I stand corrected (note to self - put brain in gear before engaging keyboard)

 

I have several tenants on 3 year terms with fixed increases.

However note that if individuals they need to prove themselves first. Most of my long term agreements are with government organisations and it works well for us.